DRAFT – These minutes are not official until approved at the next regular City Council meeting.

City of Bigfork

Special Meeting June 27, 2005

Members Present: Mayor Amy Tendrup, Amy Pifher, Richard Salmi, Bob Zimmer and Jean Lexvold Absent: None Also Present: Ted Jacobson, Connie Maki, Mike Bakke, Robin Custer, Lonnie Kacon, Gus David, Gene Rajala, Julie Aakhus, Dave Schminkey, Stormi Dahlquist, Mark Maki, Frank Stuemke, Andy Shaw, Dave Asher, Dave Waters, Bob Johnson and Clarence York

Mayor Tendrup called the meeting to order at 1:00 p.m.

The first item on the agenda was the municipal liquor store. Tendrup explained that since the closing on June 15, 2005, there has been work done on the inventory and cleaning of the building. She noted that the open bottles of liquor had been disposed of as it is not legal to sell opened containers of liquor. There is still a lot of unopened inventory left and the Council must decide what to do with it. Waters stated that he had worked for Sunny Hill Distributing and they will buy back extra inventory. Tendrup explained that Storlie had already contacted all of our vendors and they were scheduled to pick up what they could. Tendrup had the idea of holding a liquidation sale and suggested that the week of the rodeo would be a good time to do it. David suggested holding a progressive type sale where you offer bigger discounts as the sale goes on. Salmi stated that he had talked to the acting mayor in Nashwauk and they had sold their inventory along with the building. He felt this was a good option because you wouldn’t lose money by selling it at a discount. Tendrup stated that we haven’t had any offers on the building yet and she did not wish to see any of the inventory expire and go to waste. Furthermore, she felt that leaving it in the building left it susceptible to vandalism and theft. City Attorney Andy Shaw agreed that it was best to get it out of the building as soon as possible. Lexvold added that we don’t know for sure if someone would lease or buy it to run as a bar. If they wished to open another type of business, they would not want the inventory. It was suggested that perhaps the inventory could be sold to another area liquor establishment. Shaw suggested that the City Clerk contact the Minnesota Alcohol & Gambling Control Board and the League of Minnesota Cities to see about the proper procedures for purging the inventory. A motion was made by Pifher and seconded by Lexvold to hold a progressive type sale the week of the rodeo and to try to sell anything left after that to another area liquor vendor, pending Storlie’s investigation of legal procedures, Motion Carried Unanimously (MCU).

Shaw asked the Council what they intended to do with the building. This has not been discussed yet. David stated that he and many others think it is a better idea to sell it because if you lease it there are too many issues with maintenance. Tendrup stated that maintenance agreements can be a part of the lease contract. Shaw stated that you can never predict if leasing is better than buying because you don’t know what might happen, however, he added that there are not many tenants who would undertake any major maintenance responsibilities. Gene Rajala felt that the Council should not even consider leasing it and should try to sell it first. Shaw stated that the Council should order an appraisal of the property first so that they have a benchmark figure to go by. He estimated that a commercial appraisal would run about $1500.00 He felt that a lease agreement would have to be awfully good in favor of the City for it to be a better option than selling it. He pointed out that if it is leased, it is no longer tax-exempt, but as the property owner, the City would be paying the taxes anyway. Also, the City would still be required to carry insurance on the property. Shaw did not see the lease of the building as being a money-making endeavor for the City. Salmi had concerns about receiving one big lump sum from the sale and asked what the City would do with the funds. Shaw didn’t feel that would be a problem as the City currently has many needs. Salmi felt the money should be invested and the interest could be used for City needs. Waters pointed out that if the building sits vacant, it is just a money drain for the City. Zimmer suggested that perhaps the current City Hall should be given to the historical society and the municipal liquor store building could be used for city offices as it is a more economical and energy efficient structure. Rajala did not feel that any historical society would take the current hall. Tendrup felt that we can’t afford to lose another business in town and a business is more likely to locate in the liquor store building than the City Hall building. Connie Maki suggested moving the city offices to the Fire Hall and selling both other buildings. Salmi made a motion to sell the building, seconded by Lexvold, MCU. Motion by Salmi and seconded by Lexvold to have Storlie order an appraisal by Pokegama Appraisal Service at a cost not to exceed $1500.00 on the property, MCU. Tendrup asked if the Council wished to use a realtor for the sale of the property. Salmi felt it would be better not to use one. Shaw stated that the City can sell without a realtor. He stated that interested parties could make offers directly to the Council.

Connie Maki asked about some of the bar chairs. Apparently some of them were purchased with donation money and the names of those donors are on the chairs. Maki asked if they would get the chairs. It was felt that since they were donations, the chairs now belonged to the City. Rajala brought up that many of the decorations of old pictures and logging tools were loans to the City and that he had picked up those items that were his. Tendrup and Storlie reported that a few others had picked up their items as well and others were being contacted about theirs. Anything left will be put on display at City Hall.

The next item on the agenda was health insurance coverage for City officials. Storlie explained that Bob Zimmer had inquired about the possibility of City Council members being covered under the City’s health insurance policy. Storlie had checked with the insurance company and found that the City must consider City Council members as employees in order for them to be allowed to receive coverage. City Personnel Attorney John Licke informed Storlie that considering them employees would make them susceptible to all employment laws including pay schedules, other benefits, unemployment law, etc. He also stated that Itasca County covers their board members and he could look into how they deal with the issue. Schminkey felt that the City should not take on any additional expenses at this time. (Schminkey also brought up a concern that the minutes of City Council meetings are not always accurate, in particular the omission of one comment made by Gene Rajala at the last meeting that the Council knew about the liquor store issues for some time and took no action. Shaw stated that the minutes aren’t intended to be a verbatim record of everything said at the meeting and added that Bigfork has very thorough minutes compared to other cities that he works with.) Storlie clarified that the coverage would be available at the Council member’s own expense and that it would not cost the City anything. Rajala felt that Council member’s come and go too frequently to make this feasible and they know when they sign up for the job what it entails. Connie Maki felt that if they pay for it themselves, it shouldn’t be an issue. Waters stated that according to the City Personnel Policy, part-time employees do not get benefits and unless the Council members worked over 1040 hours in a year, they would not be eligible. The Council directed Storlie to have Licke check into the issue further as he stated he could do.

Next on the agenda was a review of rules of order and procedures for Council meetings. Shaw provided copies of information from the League of Minnesota Cities on open meeting laws and Council proceedings. He stated that a few of the recent meetings have gotten out of hand as far as people talking out of turn, more than one conversation taking place at one time, etc. He stated that you want the meeting to be efficient and to address all the items on the agenda and resolve them as best you can. He reminded the Council that, while it is important to have public input, that is not the purpose of the meeting. The purpose is to have the Council meet and make decisions. The public can attend the meeting but has no right to participate in it. He stated that the chaotic nature of the recent meetings makes it nearly impossible for anyone needing to review the permanent record of proceedings to determine what exactly took place. He informed Mayor Tendrup that it is her place to control the meeting and to recognize anyone she wishes to allow to address the Council. Tendrup stated that she would be more strict with calling on the public to speak and asking for input. If anyone has an item to address with the Council, they should call the City Clerk to be put on the agenda by the Thursday before the meeting. Tendrup also stated that the Council needs to make motions on items whether they agree with them or not so that the issue can be discussed. She clarified that it is not the motion and the second that makes the action, it is the vote. Shaw agreed that the motion and second simply gets the item before them for discussion. He added that motions should always be made in the affirmative and if the Council wishes to “not” do something, they should vote it down rather than making a motion to “not” do something.

The final item on the agenda was Council member conduct. Shaw stressed the importance of making good representation to the community and other entities. He stated that it is not acceptable to make promises or to say that you are acting on behalf of the City if there has not been a motion passed at a Council meeting directing you to do so. He added that a Council member can be held personally liable in this situation. Schminkey asked if it was acceptable for Council members to gather information and Shaw stated that it was. Connie Maki asked what could be done if a Council member was going around town badmouthing someone. Shaw would not respond to the question as it was not hypothetical in nature. Shaw stated that his last point was the interaction between Council members and employees of the City. He reminded Council that while they are authorized to ask for information from employees, they are not authorized to direct them to do things. If there is a concern about job performance, it should be brought up and addressed as a whole Council. Tendrup asked Mark Maki to address his concern on this item. Maki stated that he has been getting phone calls and has learned that other people in the community and from the Council are contacting entities with questions. The particular issue in question is the use of chemicals to reduce sludge in the sewer pond. He stated that it is not good to have more than one person calling with questions as it wastes the time of the person answering. He asked that all residents and Council members with questions or concerns come to him and he will make the appropriate contacts to find answers. He is concerned that we will not receive the help we have in the past if our supporting entities get irritated. Also, our funding cycles for grants could be held up if these entities are getting mixed information from different sources. Maki stated that it is hard for the Public Works Department to work this way when people are working in different directions. Tendrup added that the City has hired licensed people to do these jobs for us and the Council and residents should use the proper chain of command to have their questions and concerns answered. Maki is the person to be contacted with any issues relating to water and sewer. He will make the appropriate contacts and supply an answer. Tendrup added that if anyone knows people with expertise in this area, they should approach the Council about inviting them to a meeting. Maki had invited Frank Stuemke from Minnesota Rural Water to clarify the issue of chemical usage to reduce sludge. Stuemke would be available after the meeting to visit with one or two Council members at a time about this.

Mayor Tendrup adjourned the meeting at 2:00 p.m.

Angie Storlie City Clerk

These minutes are available on the City website at www.cityofbigfork.com. To sign up to receive the minutes by email, send your email address to ctyclerk@bigfork.net.